Business which includes high value added products with high value addition processes including post operations such as printing, fetch higher returns for entrepreneurs, ushering higher net profitability. One such product which has a high potential as well as high growth is Flexible Packaging Laminates.
New products and new applications are helping this industry achieve higher capacity utilization. Existing processors of polyethylene multilayer film can produce multifarious products such as polyethylene 3 layer film for flexible packaging laminates, mulch film, garbage bags, stretch and cling films, etc on the same 3 layer film extruder, making the extruder a versatile machine. Higher output machines bring make business more viable, helping entrepreneurs in lowering costs of conversion. Initiatives by machinery manufacturers in the country with these high output machines have helped entrepreneurs achieve a higher net profitability. Entrepreneurs who produce 3 layer film can produce one more product with an investment in the lamination machinery helping these entrepreneurs minimize costs of conversion.
Products like Linear Low Density Polyethylene (LLDPE) Mulch film which has a high potential in the country can be looked by entrepreneurs as an alternative product on the 3 layer film extruder. LLDPE Mulch film is used to retain the moisture level in the soil for proper growth of fruits and vegetables. In 2007, India was the No.1 producer of fruits (accounting for 32 mln tons out of 370 mln tons of fruits production in the world) & No.2 producer of vegetables (accounting for 71 mln tons out of the 473 mln tons of vegetables produced in the world) Hence, a high potential exists for plastic products related to agriculture.
(Source: http://www.punebds.com/tl.asp)
Another factor for the growth of polyethylene flexible packaging laminate industry is the growth in the food processing industry.
| India's Food Processing Industry |
| Size |
Rs 3150 bn incl Rs 990 bn of value added exports |
| Industry's STO |
Rs 140,000 crore |
| Growth Rate |
9-12% |
| (Includes Fruit & Vegetables, Meat & Poultry, Milk & Milk Products, Fisheries, Grain Processing, Confectionery, Mineral water) |
(http://www.indiaonestop.com/foodprocessing.htm)
Processed food consumers form 40% of the total laminates
• Rapid Growth revolves around �..
- India has the second largest population in the world, leading to a buoyant growth in food industry
- Higher rate of urbanisation
- Dual Income families
- Economic Liberalisation
- Need for high quality time
- Convenient products such as ready to eat food
- Entry of more number of MNC�s
- Supermarkets
- Booming Rural Markets
Organized retailing is projected to grow at the rate of 25-30% pa, touching US$24 bln by 2010. Investments in the retail sector are estimated at over US$4 bln by the end of 2010.
(http://english.peopledaily.com.cn/200509/22/eng20050922_210180.html)
With a growth of 25-30%, an expanding consumer base, and more than 1 Billion inhabitants, this industry forms a sunrise sector. Indian Packaging Industry is growing at 15%, and valued at US$14.7 bln. 45% share is of food Processing Industry, 25% share of Pharmaceuticals and 10% share of Personal products, tea and coffee, industrial products industries.(Source : CMIE, http://72.14.235.104/search?q=cache:oF1R1uGaz3AJ:commercecan.ic.gc.ca/scd)
India's growing population and increasing number of dual income families is leading to an increase in purchasing power, triggering a high demand for ready to eat foods packed in these laminates. These flexible packaging laminates are made up of either polypropylene or polyethylene, offer following advantages to the packed contents:
• Acts as a barrier to water vapour, odours, flavourants and light
• Main Properties
- Impermeability
- Non-Toxicity
- Good Barrier Properties
- Ductility/foldability
- Sealability
- Printability
• PET/LDPE-Low Transmission rate, Volatile permeability, stiffness & Resistance to high temperature
• Metallised PET/LDPE-Very low permeability & has only 2% light transmission
• Aluminium foil/LDPE-Very low water vapour Transmission rate, strong puncture resistance, Opaque and resists high temperature
• BOPP/PET-Good moisture resistance, high Impact strength Plastic packaging :
- Ensures integrity & delivers product in a clean & safe form
- Prevents spillage or spoilage
Consumerism in India
- Amongst the highest absolute working population in the 20-59 age group-Driving Incomes
- Expected to add 200 million people in the 20-59 bracket by 2016
- Proportion of (middle, upper-middle and high) households to grow from 46% to 73% of total urban households. this will drive consumption
(Source : Crisinfac)
Consumerism � Growing Prosperity � All India
(Source : NCAER)
Steps to Global Competitiveness
- New Advances in raw material for better downgauging & cost reductions
- Technology enhancement, both for main machines & as well as converting machines
- Machinery capable of achieving higher productivity
- Product Innovations to meet international standards
- Printing machines to achieve excellent printability which should be able to produce laminates of international standards
- Improvements in the quality of inks for better adhesion of ink to the substrates
- Slitter rewinders with higher speeds, automations & technological advancements
Conclusion
- To compete in both domestic & international markets, India�s industry will be forced to modernize package manufacturing facilities
- Demand for quality packaging & printing is being driven not only domestically but also with India�s ever growing export markets & the quality demands of this sector.
- Western technology is in demand as the fastest way to help India�s convertors meet both new volume levels & provide high quality products
- A higher demand for prepackaged convenience foods, in turn a new demand for food packaging
洗涤剂的体积增长,洗发水en positive
- Monetary gains to entrepreneurs would help these entrepreneurs to increase the product mix and the society by hygienically better products
- Introduction of higher output machines by machinery suppliers in the country and with a higher product mix would bring in a higher growth in flexible packaging laminate industry.
(Abridged from article by Ms Poorvi C. Desai, Business Development - Polymers, Reliance Industries Limited)
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